Dollar steady in Asia amid stimulus uncertainty
AFPTOKYO--The dollar held steady against the yen in Asian trade Tuesday amid uncertainty about the Federal Reserve's plans for its huge stimulus program.
September 25, 2013, 12:08 am TWN
In Tokyo afternoon trading, the greenback bought 98.87 yen, nearly unchanged from New York overnight but down from levels above 99 yen in Asia earlier Monday.
The Fed last week surprised markets by keeping its bond-buying scheme unchanged, confounding economists who had expected the bank to begin reeling it in as the U.S. economy shows signs of strengthening.
On Friday, two days after the Fed announcement, senior bank official James Bullard said the cutbacks could still come this year.
But on Monday, other Fed officials reinforced the message that the central bank needed to see more concrete improvement in the economy before cutting back on the US$85 billion-a-month bond-buying scheme.
In other trading, the euro was at US$1.3494 against US$1.3493 in New York and well off the US$1.3529 touched in Asia Monday, while it also eased to 133.31 yen from 133.37 yen.
The single currency suffered selling after European Central Bank chief Mario Draghi voiced concern Monday about rising interest rates on the interbank markets and said the ECB could provide fresh liquidity.
The euro's initial uptick after German chancellor Angela Merkel clinched her third term in a convincing election victory Sunday proved to be short-lived.
The dollar was mixed against other Asian currencies.
The greenback rose to 11,156 Indonesian rupiah from 11,495 rupiah on Monday, to SG$1.2533 from SG$1.2494.
It also rose to 31.27 Thai baht from 31.13 baht, to 62.69 Indian rupees from 62.53 rupees, and to 43.35 Philippine pesos from 43.15 pesos.
The U.S. unit sagged to 1,075.28 South Korean won from 1,076.24 won.
The Australian dollar slipped to 94.13 U.S. cents from 94.26 cents, and the Chinese yuan sank to 16.12 yen from 16.20 yen.